WLFI's Buyback Blitz: Boosting Confidence or Hiding Market Concerns?
Bitget-RWA2025/11/26 05:32
By: Bitget-RWA
- Trump-backed WLFI accelerated $10M token buybacks, repurchasing 59M tokens in six hours, boosting prices over 5% via Strategic Reserve address activity. - On-chain buybacks contrast with WLFI's weak stock performance (ALT5) - $191M market cap vs $1.1B token holdings, highlighting investor sentiment disconnect. - Trump family's crypto entanglements, including executive pardons and industry partnerships, raise regulatory scrutiny despite project's compliance claims. - Analysts question long-term viability
With support from Trump,
World Liberty Financial
(WLFI) has ramped up its token repurchase initiative, allocating close to $10 million to buy back 59 million WLFI
tokens within a six-hour window, as per data from Arkham Intelligence
. This comes after a focused $5.54 million buyback of 32.93 million tokens from its Strategic Reserve address in just three hours, which resulted in a price increase of over 5% for the token
. The swift purchases underscore the project's approach to boosting market trust through visible on-chain moves, though its overall financial health presents a mixed picture. 
which prioritizes adherence to regulations
, has attracted notice for its assertive buyback strategy. The most recent acquisitions took place on CoW Swap, a decentralized trading platform, as the organization continues to use protocol reserves to help stabilize WLFI’s price according to the latest updates
. Blockchain analysts point out that such concentrated buybacks may indicate institutional backing, but they could also introduce short-term price swings if traders expect further purchases. Yet, WLFI’s traditional market performance stands in stark contrast to its on-chain activity. The company’s stock, listed as ALT5, has seen its market cap drop to $191 million, while
its current WLFI token holdings are worth $1.1 billion
at prevailing rates. This gap has prompted questions about investor confidence, especially since WLFI tokens have lost 34% of their value since debuting in September
. Some critics contend that the buybacks may not fully resolve deeper doubts about the project’s sustainability, particularly amid ongoing crypto market turbulence and regulatory ambiguity. The Trump family’s growing engagement with the crypto sector has also come under the spotlight.
Recent coverage points to a recurring theme
of financial and political connections, including pardons for prominent crypto leaders and collaborations with industry players who have backed the family’s initiatives. While World Liberty Financial presents itself as a regulation-friendly, U.S.-centric venture
, the Trump name’s involvement in crypto remains controversial, drawing both advocates and critics. As the WLFI buyback campaign continues, market watchers are keen to see how the token’s price reacts to ongoing on-chain buying. The project’s success in aligning its treasury management with broader market sentiment will be key to determining if these actions deliver lasting value for its investors.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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